Determinants of Fuel Subsidies in Selected Oil Exporting Countries: (The Case Study of Gasoline Subsidy)

Subject Areas : Labor and Demographic Economics

Hossein Tavakolian ¹ , Ali Faridzad ² , Jalal Dehnavi ³ , Neda Mohamadi ⁴

1 - Assistant professor, Faculty of economics, Allameh Tabataba'i university
2 - عضو هیئت علمی دانشکده اقتصاد، دانشگاه علامه طباطبائی
3 - Sinior Energy Expert Monenco IRAN
4 - MA student of energy economics

Received: 2019-03-11 Accepted : 2019-03-11 Published : 2019-02-20

Keywords: C23, Governance, G34, JEL Classification: Q53, H23. Keywords: Fossil Fuel Subsidies, ICRG Index, Carbon emissions, Dynamic Panel,

Abstract :

Abstract The purpose of this paper is to examine the factors affecting the payment of fossil fuel subsidies in oil exporting countries. To this end, the determinants of fossil fuel subsidies in selected exporting countries are divided into three sections: economic, political and institutional factors, and analyzed by the method of generalized moment data of dynamic panel data in the period 2003-2015. The results showed that variables such as carbon emissions and health costs are effective in paying gasoline subsidies. International Indicators of Risk also show the impact of institutional and political factors on subsidies. Based on the results, international organizations or management organizations should have targeted and accurate investment in improving the organizational and institutional capacity of the countries.

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